What is necessary to reactivate credit?

This is for two reasons.

On the one hand because those banks that need capital will probably choose the motto “if it ain’t broke, don’t fix it” (the key to understanding Deutsche Bank’s recent capital increase). And on the other hand, because new significant capital requirements for all big banks are not necessary.

Let’s see some data:

a) The common equity Tier 1 of the biggest listed banks (close to 10%) more than doubles the current requirements (4.5%) and exceeds the most demanding requirements for 2019 (between 8 and 9.5% for big banks or banks with systemic risk, and 7% for the rest).

b) Regarding the leverage, all banks in the Eurozone have already exceeded it. However, in some cases (e.g. Deutsche Bank, BNP or Société Générale), the ease is not too large. Be that as it may, this requirement will not be demanding until 2017.